How does AAM define market cost competitiveness in the United States?
AAM has benchmarked competitor labor costs in the driveline segment of the U.S. automotive supplier industry. The market competitive labor cost structure is in the range of $20 – $30 per hour “all-in labor cost”. Pursuant to the expired master agreement with the UAW, AAM’s “all-in labor cost” is currently $73.48 per hour! This is approximately three times the market rate of our competitors in the United States. This includes both automotive and automotive supplier companies that have plant-wide “non-core” status – which means their “all-in labor costs” are in the range of $20 – $30 per hour. This also includes other UAW-represented suppliers such as Dana (of Toledo, Ohio), Neapco (of Van Buren Township, Michigan, a subsidiary of a Chinese manufacturer Wanxiang), FormTech (of Royal Oak, Michigan) and Bharat Forge (of India and operating in Lansing, Michigan). AAM has reported that its “all-in labor cost” for its original U.S. locations is $73.48 per hour. Is this accurate? Pursuant to t
